Location Modelling and the Localization of Portuguese Manufacturing Industries

Paulo Guimarães (), Octávio Figueiredo and Douglas Woodward ()
Authors registered in the RePEc Author Service: Paulo Guimaraes

ERSA conference papers from European Regional Science Association

Abstract: The recent index proposed in Ellison & Glaeser (1997) is now well established as the preferred method for measuring localization of economic activity. We critically review this index and build on the McFaddenÂ’s Random Utility (Profit) Maximization framework to develop an alternative measure that is more consistent with the theoretical construct underlying the original work of Ellison and Glaeser. Given that our method is regression based it goes beyond the descriptive nature of the EG index and allows us to evaluate how the localization measure behaves with changes in the systematic forces that drive firmsÂ’ location decisions. JEL classification: C25, R12, R39

Date: 2004-08
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa04p28

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